EXECUTIVE'S PERCEIVED STRATEGIC UNCERTAINTY AND ENVIRONMENTAL SCANNING PATTERN OF SMALL AND MIDDLE SERVICE FIRMS IN WEST SUMATERA

Sadli, Weni (2008) EXECUTIVE'S PERCEIVED STRATEGIC UNCERTAINTY AND ENVIRONMENTAL SCANNING PATTERN OF SMALL AND MIDDLE SERVICE FIRMS IN WEST SUMATERA. Other thesis, Fakultas Ekonomi.

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Abstract

This study examined the relationship between executive's perceptions of strategic uncertainty and environmental scanning behavior. Environmental uncertainty is inability to predict an organization's environment. To understand the change of external forces, organization scan the environment to develop effective response to those changes and stay survive in the future. Environmental scanning is generally viewed as prerequisite for formulating effective business strategies in achieving outstanding performance. A sample of 54 middle and small service firms in West Sumatera was used to test hypotheses related to strategic uncertainty and environmental scanning behavior. This research found that sectors of task environment generated greater level of strategic uncertainty rather than sectors of general/remote environment. When the level of strategic uncertainty is high, executives is reported greater frequency of scanning and broader scope of scanning. Executives in high performing firms scanned environment more frequent and broader in response to uncertainty than low performing firms, The result of this research than compared with the similar prior researches on small manufacturing firms in US and Nigeria to draw conclusion for theories of uncertainty and scanning behavior in various industries and environmental characteristics.

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